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Business, 24.02.2020 18:28 InfinityVicky

A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%. Use a three-step tree in an excel spreadsheet to value an 18-month American put option with a strike price of 1,000 when the volatility is 20% per annum.

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A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%....
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